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At the end of an accounting period, a company's total assets equaled [tex]\$386,750[/tex], and liabilities equaled [tex]\$98,500[/tex].

How much was the owner's equity?

[tex]\text{Owner's Equity} = \$[?][/tex]

Sagot :

GinnyAnsweridn
To determine the owner's equity at the end of the accounting period, we use the fundamental accounting equation:

[tex]\[ \text{Owner's Equity} = \text{Total Assets} - \text{Total Liabilities} \][/tex]

Given the values:
- Total assets: \[tex]$386,750 - Total liabilities: \$[/tex]98,500

We substitute these values into the equation:

[tex]\[ \text{Owner's Equity} = \$386,750 - \$98,500 \][/tex]

Performing this subtraction:

[tex]\[ \text{Owner's Equity} = \$288,250 \][/tex]

Thus, the owner's equity at the end of the accounting period is \$288,250.
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